Changan Automobile Establishes German Subsidiary, Expanding European Market Presence

Chongqing - On September 3, Changan Automobile announced the official establishment of its German subsidiary in Munich. In addition to sales, marketing, and services, the new subsidiary will focus on customer insights, market research, technical regulations, certification, and product localization, marking Changan’s deeper expansion into the European market.

This is Changan's fourth subsidiary, following others in Russia, Thailand, and Mexico. Along with the joint venture “Master Changan” in Pakistan and the overseas office in Dubai, Changan has completed the layout of its “Five Regional Business Units” under the “Vast Ocean Plan.” These key bases drive market expansion in Southeast Asia, Europe, the Middle East and Africa, Latin America, and the Commonwealth of Independent States (CIS).

As part of the “Vast Ocean Plan,” Changan aims to invest over $10 billion in overseas markets by 2030, achieve annual overseas sales of over 1.2 million units, and employ more than 10,000 people globally. The goal is to become a world-class automotive brand. A key component of this strategy is leveraging the German subsidiary as a pivotal hub for European expansion. 

Changan’s new energy vehicles are ready for launch. (Photo/Visual Chongqing)

Data from the China-Europe Technical and Economic Cooperation Association reveals that the EU currently has around 250 million passenger cars, with an average vehicle age of 12 years, compared to about five years in China. This indicates that Europe is entering a new cycle of vehicle replacement. 

The association also notes that Europe’s transition towards “zero-carbon transportation” provides a significant opportunity for Chinese automakers like Changan to promote new energy vehicles. Changan’s focus on the European market is well-timed as a leading company in the Chengdu-Chongqing automotive industry.

“We are already prepared at a systemic level,” a Changan Auto representative said. After years of global expansion, the company has established a collaborative R&D network across six countries and ten locations, each with a specific focus. The company has also built 33 factories worldwide for vehicles, engines, and transmissions, with sales channels spanning over 70 countries. 

From January to July this year, Changan’s independent brand overseas sales reached 228,000 units, a 67.6% increase year-on-year. The company’s Thailand factory is set to be operational soon, and presales for its Deepal models have already begun in Latin America.

(Huan Ran, as an intern, also contributed to this report.)